Shares of National Grid (NG.L) climbed 0.31% to 1,289 pence in early London trading, approaching its 52-week peak of 1,300.5p. The FTSE 100 index gained 0.23% during the session.
The British pound declined after the resignation of Prime Minister Keir Starmer's chief of staff, introducing fresh political uncertainty. The euro strengthened 0.52% against sterling to 87.24p. Analysts noted continued pressure on UK government bonds, which influences rate expectations.
Utilities like National Grid are often viewed as bond proxies due to their stable dividend streams. Consequently, movements in gilt yields directly affect their valuations. Higher yields typically reduce the sector's appeal, while anticipated rate cuts can attract investor interest.
National Grid's operations span regulated power and gas networks in Britain and the northeastern United States. This international footprint exposes the company to currency exchange fluctuations, particularly when converting dollar-denominated revenues back to pounds for reporting.
Global risk sentiment remained positive, supported by strong Asian equity performance that propelled Japan's Nikkei to a record high. This environment provided enough stability for defensive sectors to hold ground despite sterling volatility.
The company is scheduled to release its full-year financial results on May 14. Market participants will scrutinize the report for updates on capital expenditure plans, funding strategies, and dividend guidance.
